When the Owner of a Firm Sells "Recession Insurance" to Her

question 59

Multiple Choice

When the owner of a firm sells "recession insurance" to her employees, it means that the:

• A) employees sacrifice larger bonuses during good economic times in return for higher salaries during bad economic times.
• B) owner of the firm earns higher profits during bad economic times by skimming off the workers' salaries.
• C) employees are not allowed to quit the firm for higher pay during good economic times.
• D) employees are not allowed to quit the firm during bad economic times.

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Definitions:

Rorschach Inkblot Test

The most widely used projective test; a set of 10 inkblots, designed by Hermann Rorschach; seeks to identify people’s inner feelings by analyzing their interpretations of the blots.

Rorschach Inkblot Test

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex algorithms, or both.

Reliability

The extent to which a measurement instrument yields consistent and stable outcomes across different occasions.

Validity

Validity is the extent to which a test or instrument accurately measures what it is intended to measure.